Metaplanet Secures $100M Bitcoin-Backed Loan During Market Downturn
Japanese investment firm Metaplanet executed a $100 million loan secured by its Bitcoin holdings on October 31, 2025. This strategic move demonstrates institutional conviction despite Bitcoin’s recent price volatility. The Tokyo-listed company represents a growing trend among corporate treasuries leveraging digital assets for traditional financing.
Metaplanet Bitcoin Treasury Strategy Strengthens Position
The borrowing represents the first drawdown from a $500 million credit facility established in late October. This positions Metaplanet as a major player in Bitcoin corporate adoption. With 30,823 BTC currently on its balance sheet, Metaplanet now ranks as the fourth-largest corporate Bitcoin holder globally.
The firm’s Bitcoin treasury strategy mirrors approaches pioneered by other institutional investors. The loan features daily automatic renewal and can be repaid at Metaplanet’s discretion without a fixed maturity date. This flexible structure allows the company to maintain exposure to potential Bitcoin appreciation while accessing capital for strategic initiatives.
Bitcoin-Backed Loan Fuels Multiple Strategic Initiatives
Metaplanet allocated the $100 million across three purposes: additional Bitcoin purchases, income generation through cash-collateralized Bitcoin options, and potential share repurchases. This multi-pronged approach demonstrates sophisticated treasury management during market uncertainty.
The income business component generates revenue through selling cash-secured Bitcoin options. The options strategy delivered 24.4 billion yen ($160 million) in Q3 2025 revenue, representing 3.5x growth from 6.9 billion yen in Q3 2024. This strategy allows the firm to earn premiums while maintaining Bitcoin holdings.
Metaplanet announced a 75 billion yen ($500 million) share buyback program, also backed by Bitcoin-collateralized financing. This initiative aims to enhance shareholder value and capital efficiency during periods when the company’s enterprise value trades below its Bitcoin reserves.
Corporate Bitcoin Adoption Slows Amid Market Volatility
Bitcoin on Tuesday plunged below $100,000 for the first time in more than four months, marking the first time since June 23 that the flagship cryptocurrency traded below $100,000. This price action creates challenges for companies holding substantial Bitcoin treasuries.
Corporate crypto accumulation has slowed sharply in Q4 2025. Between January and June, public companies collectively added approximately 245,000 BTC to their balance sheets. That figure dropped to 205,000 BTC in the second half of the year and 28,000 BTC in Q4 so far.
Despite these headwinds, Metaplanet maintains aggressive accumulation targets. Metaplanet maintains its Bitcoin Treasury Strategy targeting 210,000 BTC by December 2027. The company already hit its 2025 interim goal of 30,000 BTC ahead of schedule in early October.
Bitcoin Collateral Provides Sufficient Coverage Against Volatility
Metaplanet stated that its $3.5 billion Bitcoin position maintains sufficient collateral coverage against the loan amount, even during significant price declines. The borrowing represents approximately 3% of the company’s total Bitcoin holdings by value.
The company emphasized conservative financial management practices. Management stated that the collateral buffer allows the firm to withstand substantial Bitcoin price drops without triggering margin requirements. This prudent approach reduces liquidation risks during volatile market conditions.
The firm expects minimal impact on fiscal year 2025 financial results from the current borrowing. However, management pledged to announce promptly if any material effects emerge from the loan facility.
Bitcoin Treasury Model Faces Market Scrutiny
The moves came after the company’s modified net asset value (mNAV) fell below 1.0x in mid-October, with shares declining 70% from their June peak. This metric divides enterprise value by the value of Bitcoin holdings. When it falls below 1.0, it indicates the company trades at a discount to its Bitcoin reserves.
Investor sentiment deteriorated alongside the price action, with the Fear & Greed Index falling to 21, indicating extreme fear on the market. This represents the metric’s most depressed reading since early April, when Bitcoin fell below $75,000.
While Metaplanet ramps up, most other corporate Bitcoin treasuries are cooling off. The firm stands out as an exception to broader industry trends. The financing comes as more corporations explore Bitcoin-backed lending solutions to optimize their treasury management while preserving exposure to digital asset appreciation.
Conclusion
Metaplanet’s $100 million Bitcoin-backed loan represents a bold institutional bet on long-term value. Despite market volatility and Bitcoin dropping below $100,000, the firm continues expanding its treasury position. This strategy demonstrates conviction that digital assets can serve as effective collateral for corporate financing while maintaining upside exposure.
